Uniper Investor Presentation - Investor Relations

26
9M 2019 Interim Results Sascha Bibert CFO 12 November 2019

Transcript of Uniper Investor Presentation - Investor Relations

Page 1: Uniper Investor Presentation - Investor Relations

9M 2019

Interim Results

Sascha Bibert – CFO12 November 2019

Page 2: Uniper Investor Presentation - Investor Relations

9M 2019 Results in-line with Expectations, Outlook

increased

2

386203

9M 2018 9M 2019

EBIT

EBITDA

Adj. EBIT(DA) – 9M 2019 down vs. previous year

€m

720891

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Adj. EBIT(DA) – Isolated Q3 2019 up

€m

Outlook 2019 – EBIT raised and range narrowed1

€m

1. Outlook now incl. reinstatement of UK capacity market

-171

-183

FY 2018 Old 2019E new 2019E

+150

-215

-105

Q3 2018 Q3 2019

-49

63

Q3 2018 Q3 2019

+112

+110

950

750

Range850

550

Range

865

EBIT EBITDA

Page 3: Uniper Investor Presentation - Investor Relations

Key Developments

Outstanding health & safety performance

Positive employee survey

New COO announced

m

Team

German coal exit discussion progresses

UK capacity market reinstated

Fortum with acquisition of additional min. 20.5%,

subject to regulatory clearance

Constructive talks continue

y

Shareholder

3Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Datteln 4 power plant COD well on track

Berezovskaya 3 COD end of Q1 2020 expected

Performance Portfolio & Strategy

Page 4: Uniper Investor Presentation - Investor Relations

Dark & spark spreads4Carbon trading prices1

4

Commodity Markets – Volatile Trend

Gas prices2 Electricity prices3

1. EU Allowances (EUA) spot prices 2. Gas forwards 2020 3. Electricity baseload forwards 2020

4. Dark and spark spreads Germany 2020 (Efficiency coal plants 39%, gas plants 55%)

Source: Bloomberg, Uniper Market Analysis; prices shown until end of October 2019

EUR/t CO2 EUR/MWh EUR/MWh EUR/MWh

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

5

10

15

20

25

30

Jan 2018 Oct 2018 Jul 2019

EUA

14

16

18

20

22

24

Jan 2018 Oct 2018 Jul 2019

TTF

10

20

30

40

50

60

Jan 2018 Oct 2018 Jul 2019

Germany

Nordic-8

-5

-2

1

4

7

Jan 2018 Oct 2018 Jul 2019

CDS 2020

CSS 2020

Page 5: Uniper Investor Presentation - Investor Relations

0

10

20

30

40

50

60

9M 2018 9M 2019

+3%

International Power –

Production volume

Global Commodities –

Gas storage filling1

5

Uniper – Operating Indicators

1. Physical filling-level

2. Pro-rata view

TWh

Key messages

Global Commodities

Gas storage filling levels at

maximum

European Generation

Fuel switch coal to gas

accelerated

Unplanned coal plant outage

in NL

Higher outright volumes

International Power

Output up due to favorable

export/import balance

Positive trend slowed down

in Q3

European Generation –

Production volume2

0

10

20

30

40

50

60

9M 2018 9M 2019

TWh

Hydro

Nuclear

Coal

Gas

-11%

TWh

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

0

15

30

45

60

75

90

9M 2018 9M 2019

98%79%

Page 6: Uniper Investor Presentation - Investor Relations

Guid

ed

New

203

386

Adj. EBIT 9M 2019

Russia performance

Unavailability MV3/RH2

Commodity gas

Outright (price andvolume effects)

Regulation (UK cap.)

LNG Freeport

H1 2018 One-offs

Adj. EBIT 9M 2018 Overall trend persistent in Q3

9M 2019 negatively impacted by H1 2018

one-offs, LNG Freeport hedge and absence

of UK capacity payments as anticipated in

outlook

On the operational side mostly positive

developments from higher outright prices,

gas and Russia

Unavailability of power stations Ringhals 2

(RH2/SWE) until April and Maasvlakte 3

(MV3/NL) until mid October

Adjusted EBIT 9M 2019 – Down largely due to structural

Effects

6

Reconciliation Adjusted EBIT 9M 2018 to 9M 2019

€m

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 7: Uniper Investor Presentation - Investor Relations

European Generation

204

16

220

9M 2018Russia9M 2019

126

18

-80 1

9M2018

Gas COFL Power 9M2019

-62260

-49-16

-64

6

137

9M2018

Hydro Nuc. Fossil Cons. 9M2019

Adjusted EBIT 9M 2019 – Development by Sub-Segment

7

€m

Global Commodities International Power

Hydro: lapse of Q2 2018 provision

release, positive volume effects

Nuclear: Ringhals 2 outage

Fossil: lower coal-fired production,

outage at Maasvlakte 3 and absence of

UK capacity payments, partly offset by

positive carbon management effects with

Global Commodities

Generation business in Russia

benefitted from higher day-ahead prices

and increased generation volumes

Gas midstream: benefits from portfolio

optionality as hub prices corrected at the

front end

COFL: negative LNG Freeport hedge

effects

Power: negative carbon management

effects with European Generation

€m €m

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 8: Uniper Investor Presentation - Investor Relations

Adjusted EBIT to OCF – Negative due to temporary

Working Capital Effects

8

203

517

720

401

-800

-557

18 -218

-16 -44

-277

Interest

payments

OCFbIT

9M 2019

Changes in

working

capital

Payments

related to

non-oper.

earnings,

others

Tax

payments

Adj. EBITDA

9M 2019Non-cash

effective

EBITDA

items

Provision

utilizationOCF

9M 2019

Adj. EBIT

9M 2019

Depreci-

ation and

amortization

Reconciliation Adjusted EBIT 9M 2019 to Operating Cash Flow 9M 2019€m

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 9: Uniper Investor Presentation - Investor Relations

1.5

-0.7

0.8

-0.3

0.3

0.3

0.4

0.1

1.5

0.8

0.8

0.4

1.2

0.9

0.9

-0.1 0.8

Economicnet debt YE2018 - asreported

Marginingadjustment

Pro-formaEconomic

net debt YE2018

Divest OCF Dividend Investments Pension ARO Other Economicnet debt 9M

2019

Economic Net Debt – Up mainly due to Working Capital

and Pensions

9

3.2

2.5

3.6

AROs1 Pension2 Net financial position3

1. Includes nuclear and other asset retirement obligations (‘AROs’) as well as receivables from Swedish Nuclear Waste fund (‘KAF’)

2. Change in interest rates for pension obligations by 1.1%-points for Germany since end of 2018

3. Includes cash & cash equivalents, non-current securities, financial receivables from consolidated

Group companies and financial liabilities

Reconciliation Economic Net Debt YE 2018 vs. 9M 2019

€bn

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 10: Uniper Investor Presentation - Investor Relations

Outlook 2019 – Adjusted EBIT increased and Dividend

Policy confirmed

10

Outlook 2019 – Adjusted EBIT

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Dividend pay-out and policy

€m

200271

329390

489

FY2016 FY2017 FY2018 FY2019 FY2020

Dividend above CAGR

Policy – Dividend payout ratio on FCfO 75% - 100%

Ambition – Dividend growth path CAGR 25% p.a.

FY 2018 Old 2019E New 2019E

+150

€m

950

750

Range850

550

Range

865

Mid-point – Raised with reinstated UK capacity market

Range – Narrowed with increased visibility

Page 11: Uniper Investor Presentation - Investor Relations

11

Agenda

Appendix

Page 12: Uniper Investor Presentation - Investor Relations

Outright Power Hedging in Germany and Nordic

12

Outright position – Baseload power price1

20

30

40

50

60

2019 2020 2021

€/MWh

Hedged price Germany

Hedged price Nordic Hedge ratio Nordic

Hedge ratio Germany

>85% >85% >40%

>80% >60% >10%

1. Status: 30 September 2019 Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 13: Uniper Investor Presentation - Investor Relations

Uniper Group – Adjusted EBIT(DA) by Sub-segment

13

Adj. EBITDA and EBIT

€m9M 2019

Adj. EBITDA

9M 2018

Adj. EBITDA

9M 2019

Adj. EBIT

9M 2018

Adj. EBIT

European Generation Hydro 241 305 196 245

Nuclear 77 91 30 46

Fossil 159 229 -68 -4

Other/ Consol. -19 -25 -22 -27

Subtotal 458 600 137 260

Global Commodities Gas 166 140 104 86

COFL 13 63 -37 43

Power -63 5 -66 -4

Subtotal 115 208 1 126

International Power Russia 290 279 220 204

Subtotal 290 279 220 204

Administration / Consolidation -144 -197 -155 -204

Total 720 891 203 386

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 14: Uniper Investor Presentation - Investor Relations

Uniper Group – Key Financial Performance items

14

€m 9M 2019 9M 2018

Net income / loss after income taxes 1,056 -521

Attributable to the shareholders of Uniper SE 1,009 -550

Attributable to non-controlling interests 47 29

Net interest income / expense 118 1

Other financial result -119 -22

Income taxes 242 -198

EBIT 1,297 -740

Non-operating adjustments -1,093 1,126

Adjusted EBIT 203 386

Economic depreciation and amortization / reversals 517 505

Adjusted EBITDA 720 891

Sales 52,778 53,059

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 15: Uniper Investor Presentation - Investor Relations

Uniper Group – Adjusted EBITDA to Net Income

15

Reconciliation Adj. EBITDA 9M 2019 to net income 9M 2019

720

- 517 203

- 144

59

947

-28

144

-113

1,009

Adj.

EBITDATaxes on non-

operating

earnings,

minorities

Net

Income1

Net

impairments

Economic

interest, taxes,

minorities

OtherMTM

Derivatives

Adj.

EBITD&A

Non-operating earnings

1. Net income attributable to Uniper shareholders.

€m

Underlying

earnings

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 16: Uniper Investor Presentation - Investor Relations

Uniper Group – Economic Interest Expense (net)

16

Economic interest expense of the Uniper Group

€m 9M 2019 9M 2018

Interest from financial assets / liabilities 19 9

Interest cost from provisions for pensions and similar provisions -15 -13

Accretion of provisions for retirement and obligation and other provisions -76 -60

Construction period interests1 54 34

Other2 -69 26

Economic interest expense (net) -88 -4

1. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of

the cost of the asset; borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds.

2. Includes e.g. interest due to tax provisions/ receivables and adjustments due to changes in interest rates on provisions.

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 17: Uniper Investor Presentation - Investor Relations

Uniper Group – Non-operating Adjustments

17

Non-operating adjustments

€m 9M 2019 9M 2018

Net book gains / losses - 31

Fair value measurement of derivative financial instruments -947 731

Restructuring / cost management expenses / income -33 -51

Non-operating impairment charges / reversals 28 361

Miscellaneous other non-operating result -142 54

Non-operating adjustments -1,093 1,126

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 18: Uniper Investor Presentation - Investor Relations

Uniper Group – Cash-effective Investments

18

Investments by segment

€m 9M 2019 9M 2018 %

European Generation 233 225 3.8

Global Commodities 17 12 41.7

International Power 134 129 4.3

Administration / Consolidation 17 21 -21.4

Total 401 387 3.6

Investment split – maintenance and growth

€m 9M 2019 9M 2018 %

Maintenance & replacement 178 157 13.1

Growth 223 230 -3.1

Total 401 387 3.6

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 19: Uniper Investor Presentation - Investor Relations

Uniper Group – Net financial Position

19

Net financial position of the Uniper Group1

€m 30 Sep 2019 31 Dec 2018

Liquid funds 391 1,400

Non-current securities 94 83

Receivables from margining 358 698

Financial liabilities 2,359 2,939

Net financial position 1,517 757

Provisions for pensions and similar obligations 1,236 804

Asset retirement obligations 847 948

Economic net debt 3,600 2,509

1. Since 2019 receivables from margining are reported as part of the economic net debt This also

is applied retrospectively for FY 2018 (FY 2018: €3,208m). Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 20: Uniper Investor Presentation - Investor Relations

Uniper Group – Consolidated Balance Sheet (1/2)

20

Balance sheet of the Uniper Group – Non-current and current assets

€m 30 Sep 2019 31 Dec 2018

Goodwill 1,880 1,816

Intangible assets 742 768

Property, plant and equipment 10,745 10,612

Companies accounted for under the equity method 465 440

Other financial assets 777 866

Equity investments 684 783

Non-current securities 94 83

Financial receivables and other financial assets 3,680 3,618

Operating receivables and other operating assets 4,525 4,914

Income tax assets 6 6

Deferred tax assets 1,097 1,116

Non-current assets 23,917 24,156

Inventories 1,895 1,604

Financial receivables and other financial assets 630 1,391

Trade receivables and other operating assets 13,742 21,468

Income tax assets 70 40

Liquid funds 391 1,400

Assets held for sale - 546

Current assets 16,728 26,449

Total assets 40,645 50,605

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 21: Uniper Investor Presentation - Investor Relations

Uniper Group – Consolidated Balance Sheet (2/2)

21

Balance sheet of the Uniper Group – Equity and liabilities

€m 30 Sep 2019 31 Dec 2018

Capital stock 622 622

Additional paid-in capital 10,825 10,825

Retained earnings 3,392 3,032

Accumulated other comprehensive income -3,291 -3,531

Equity attributable to the shareholders of Uniper SE 11,547 10,948

Attributable to non-controlling interest 578 497

Equity (net assets) 12,125 11,445

Financial liabilities 1,146 1,187

Operating liabilities 4,432 4,856

Provisions for pensions and similar obligations 1,236 804

Miscellaneous provisions 5,229 5,455

Deferred tax liabilities 464 355

Non-current liabilities 12,507 12,657

Financial liabilities 1,213 1,752

Trade payables and other operating liabilities 13,623 22,469

Income taxes 44 47

Miscellaneous provisions 1,133 1,478

Liabilities associated with assets held for sale - 757

Current liabilities 16,012 26,503

Total equity and liabilities 40,645 50,605

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 22: Uniper Investor Presentation - Investor Relations

Uniper Group –

Consolidated Statement of Cash Flows (1/2)

22

Statement of cash flows Uniper Group

€m 9M 2019 9M 2018

Net income / loss 1,056 -521

Depreciation, amortization and impairment of intangibles / property, plant, equipment 554 875

Changes in provisions -416 -224

Changes in deferred taxes 231 -207

Other non-cash income and expenses -199 7

Gain / loss on disposals -12 -48

Changes in operating assets and liabilities and in income tax -1,492 207

Cash provided (used for) by operating activities -277 89

Proceeds from disposals 323 130

Payments for investments -401 -387

Proceeds from disposals of securities (>3M) and of financial receivables 1,102 455

Purchases of securities (>3M) and of financial receivables -577 -1,351

Changes in restricted cash and cash equivalents 14 -13

Cash provided (used for) by investing activities 461 -1,166

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 23: Uniper Investor Presentation - Investor Relations

Uniper Group –

Consolidated Statement of Cash Flows (2/2)

23

Statement of cash flows Uniper Group

€m 9M 2019 9M 2018

Cash provided (used for) by investing activities 461 -1,166

Payments received / made from changes in capital 3 5

Payed dividend to the shareholder of Uniper SE -329 -271

Payed dividend to other shareholders -16 -16

Proceeds from financial liabilities 1,353 1,419

Repayment of financial liabilities -2,007 -95

Cash provided (used for) by financing activities -997 1,042

Net increase / decrease in cash and cash equivalents -813 -35

Effect from foreign exchange rates on cash and cash equivalents 9 -6

Cash and cash equivalents at the beginning of the year 1,138 852

Cash and cash equivalents of deconsolidated companies -4

Cash and cash equivalents from first-time consolidated companies 8 –

Cash and cash equivalents at the end of the reporting period 338 811

Uniper SE, 9M 2019 Interim Results, 12 Nov 2019

Page 24: Uniper Investor Presentation - Investor Relations

Financial Calendar & further Information

24

Financial calendar

10 March 2020

Annual Report 2019

07 May 2020

Quarterly Statement January – March 2020

20 May 2020

2020 Annual Shareholders Meeting (Duesseldorf)

11 August 2020

Interim Report January – June 2020

10 November 2020

Quarterly Statement January – September 2020

Further information

https://ir.uniper.energy

Page 25: Uniper Investor Presentation - Investor Relations

Uniper – Contact your Investor Relations team

25

Udo GiegerichExecutive Vice President

Group Finance&Investor Relations

[email protected]

Eva Christin GöttgesManager Investor Relations

[email protected]

Carlo BeckManager Investor Relations

+49 211 4579 4402

[email protected]

Anna DenisovaManager Investor Relations

[email protected]

Adam StrzyzHead of Investor Relations (SVP)

[email protected]

Peter WirtzManager Investor Relations

+49 211 4579 4414

[email protected]

Page 26: Uniper Investor Presentation - Investor Relations

Disclaimer

26

This document and the presentation to which it relates contains information relating to Uniper SE, ("Uniper" or the "Company") that must not be relied upon for any purpose and may not be redistributed, reproduced,

published, or passed on to any other person or used in whole or in part for any other purposes. By accessing this document you agree to abide by the limitations set out in this document.

This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not, and is not intended to be, a prospectus, is not, and should not be construed as, an offer

to sell or the solicitation of an offer to buy any securities, and should not be used as the sole basis of any analysis or other evaluation and investors should not subscribe for or purchase any shares or other securities in

the Company on the basis of or in reliance on the information in this document.

Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of applicable members of management of Uniper. Those

management members believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or

implied) is given that such estimates are correct or complete.

We advise you that some of the information presented herein is based on statements by third parties, and that no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the

fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. Certain statements contained herein may be statements of future

expectations and other forward-looking statements that are based on the Company’s current views and assumptions and involve known and unknown risks and uncertainties that may cause actual results, performance or

events to differ materially from those expressed or implied in such statements. No one undertakes to publicly update or revise any such forward-looking statement. Neither Uniper nor any of their respective officers,

employees or affiliates nor any other person shall assume or accept any responsibility, obligation or liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the

statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements

contained herein.

In giving this presentation, neither Uniper nor its respective agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any information or to correct

any inaccuracies in any such information.

This presentation contains certain financial measures (including forward-looking measures) that are not calculated in accordance with IFRS and are therefore considered as "Non-IFRS financial measures". The

management of Uniper believes that the Non-IFRS financial measures used by Uniper, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance an

understanding of Uniper's results of operations, financial position or cash flows. A number of these Non-IFRS financial measures are also commonly used by securities analysts, credit rating agencies and investors to

evaluate and compare the periodic and future operating performance and value of Uniper and other companies with which Uniper competes. These Non-IFRS financial measures should not be considered in isolation as a

measure of Uniper's profitability or liquidity, and should be considered in addition to, rather than as a substitute for, net income and the other income or cash flow data prepared in accordance with IFRS. In particular, there

are material limitations associated with our use of Non-IFRS financial measures, including the limitations inherent in our determination of each of the relevant adjustments. The Non-IFRS financial measures used by

Uniper may differ from, and not be comparable to, similarly-titled measures used by other companies.

Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum

totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated

financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.